Swiss regulated digital asset bank Sygnum announced that it posted its first profit following strong growth in the first half of 2024.
Spot cryptocurrency trading volumes have doubled for that period, but there’s been significant growth in the riskier areas. That includes 500% growth in derivatives trading and loan volumes increasing more than 360% including a doubling of Lombard (private wealth) loans.
“The approval and launch of Bitcoin and Ethereum ETFs were a watershed moment for the crypto sector this year, leading to a major increase in demand for trusted, regulated exposure to digital assets,” said Martin Burgherr, Sygnum’s Chief Clients Officer. “This is also reflected in Sygnum’s own growth, with our core business areas seeing a significant YTD increase in H1.”
The bank now has $4.5 billion in client assets, up from $4 billion in January when it announced a $40 million funding round. At that stage, it provided crypto solutions to 15 banks, including PostFinance, one of Switzerland’s largest retail providers. Now it serves 20 banks including Zuger Kantonalbank and Bordier & Cie.
Perhaps the biggest news is its European expansion plans. It already has a presence in Luxembourg for funds. Now it plans to expand the office and become MiCA regulated as a crypto asset service provider (CASP), allowing it to operate throughout the European Union. With offices in Singapore and Abu Dhabi, it is also advancing its plans in Hong Kong.
One recent announcement we didn’t cover was the launch of Sygnum Connect, a 24/7 instant settlement network for fiat, crypto and stablecoins.
